Cryptocurrency News

Cryptocurrencies are similar to copper and platinum, says Glenn Hutchins

  • Cryptocurrencies are similar to copper and platinum
  • They have use cases, making them valuable
  • 21 public companies now hold Bitcoin

The founder of Silver Lake Partners and private equity investor Glenn Hutchins believes cryptocurrencies are similar to copper and platinum since they have use cases. Hutchins has always been a supporter of cryptocurrencies and is one of the earliest investors in Bitcoin and other digital currencies.

Cryptos are like copper and platinum but unlike gold

Bitcoin has long been compared to gold. Most people now refer to the cryptocurrency as the digital gold. However, Hutchins doesn’t believe that comparison is right due to Bitcoin’s features. During his interview with CNBC’s Squawk Box earlier this week, Hutchins said, “The right cryptocurrencies are more like copper or platinum than gold because they have use cases and they rise and fall not just as a store of value but as their value in use.”

His views vary from most cryptocurrency investors and experts. Several experts believe Bitcoin will find it tough to thrive as a medium of exchange due to its highly volatile nature. Hence, it is an excellent store of value, recording massive gains over the past decade.

The massive entry of institutional investors into the crypto space is because they believe Bitcoin is an excellent hedge against inflation. Micro Strategy, Tesla, Square, and several other corporations bought Bitcoin because they believe it is a store of value and not necessarily a medium of exchange.

Public companies account for 1% of BTC supply

The number of public companies holding Bitcoin is on the rise. Recent data by Coingecko shows 21 public companies now hold Bitcoin, and they account for 1% of the cryptocurrency’s total supply.

As the number of public companies holding Bitcoin continues to grow, the cryptocurrency’s price would likely soar higher over the next few months.

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